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Nursery Cities: Urban Diversity, Process Innovation and the Life-Cycle of Products
Gilles Duranton,Diego Puga +1 more
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In this paper, a simple model of process innovation is proposed, where firms learn about their ideal production process by making prototypes and switch to mass-production and relocate to specialised cities with lower costs.Abstract:
A simple model of process innovation is proposed, where firms learn about their ideal production process by making prototypes. We build around this a dynamic general equilibrium model, and derive conditions under which diversified and specialised cities coexist. New products are developed in diversified cities, trying processes borrowed from different activities. On finding their ideal process, firms switch to mass-production and relocate to specialised cities with lower costs. When in equilibrium, this configuration welfare-dominates those with only diversified or only specialised cities. We find strong evidence of this relocation pattern in establishment relocations across French employment areas 1993u1996.read more
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Book ChapterDOI
Chapter 48 – Micro-Foundations of Urban Agglomeration Economies
Gilles Duranton,Diego Puga +1 more
TL;DR: In this article, the theoretical micro-foundations of urban agglomeration economies are studied, based on sharing, matching, and learning mechanisms, and a handbook chapter is presented.
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Diversity and specialisation in cities: why, where and when does it matter?
Gilles Duranton,Diego Puga +1 more
TL;DR: In this paper, the authors distil some key stylised facts from the empirical literature on cities and the composition of their activities, and study the extent to which these theories contribute to the understanding of the empirical regularities.
Journal ArticleDOI
From sectoral to functional urban specialisation
Gilles Duranton,Diego Puga +1 more
TL;DR: In this paper, the authors present evidence of a previously unremarked transformation of urban structure from mainly sectoral to mainly functional specialisation, and explain that this transformation is inextricably interrelated with changes in firms' organisation.
Journal ArticleDOI
Are Chinese Cities Too Small
TL;DR: This paper found that urban agglomeration benefits are high and that real incomes per worker rise sharply with increases in city size from a low level and then decline very slowly past the peak.
References
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Book
Principles of Economics
TL;DR: In this article, the authors present a survey of the general relations of demand, supply, and value in terms of land, labour, capital, and industrial organization, with an emphasis on the fertility of land.
Book
The Economy of Cities
TL;DR: In this article, the authors studied the economy of cities and the main social problems that humanity has and the greatest source of creativity, innovation and development opportunities to solve those problems, which is relevant for a number of reasons: first of all, because most of the planet's population is grouped in them.
Posted Content
Growth in Cities
Edward L. Glaeser,Edward L. Glaeser,Edward L. Glaeser,Hedi Kallal,Jose A. Scheinkman,Jose A. Scheinkman,Jose A. Scheinkman,Andrei Shleifer,Andrei Shleifer +8 more
TL;DR: In this paper, the authors used a new data set on the growth of large industries in 170 U.S. cities between 1956 and 1987 and found that local competition and urban variety, but not regional specialization, encourage employment growth in industries.
Journal ArticleDOI
Innovation in cities: Science-based diversity, specialization and localized competition
TL;DR: In this article, the authors consider the effect of the composition of economic activity on innovation and test whether the specialization of economic activities within a narrow concentrated set of activities is more conducive to knowledge spillovers or if diversity, by bringing together complementary activities, better promotes innovation.
Related Papers (5)
Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
Neil Lee,Andrés Rodríguez-Pose +1 more